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Pastoral Actors, Ecosystem Services, and Society As Key Elements of Mediterranean Agro-Pastoral Systems

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Pastoral Actors, Ecosystem Services, and Society As Key Elements of Mediterranean Agro-Pastoral Systems http://pactores.eu [email protected] Pastoral Actors, Ecosystem Services, and Society as Key Elements of Mediterranean Agro-Pastoral Systems What socio-political and economic changes are required to enhance the prosperity of Mediterranean agro-pastoral communities? Task 3.1. Economic appraisal of APS and sensitivity analysis Task 3.1. Economic appraisal of APS and National Report – Greece sensitivity analysis Logos? National Report – Greece http://pactores.eu [email protected] National reports in PACTORES PACTORES national reports present the results of the analysis of economic performance of agro-pastoral farms in the Mediterranean. They are based on on-site surveys in each participating country. PACTORES researchers engaged with agro-pastoral farmers in their respective case study areas and collected technical and economic data from ‘typical’ farms, which reflect the main facets of pastoralism in each area. The results presented here illustrate the situation in Greece and provide key information regarding the organization of farms, their revenues and expenses as well as their economic results. Results and indicators are presented for three different profiles of farms, derived according to farm sizes in the area, but also for the average farm. This will help all stakeholders understand how each type operates and what needs to be done for each type to increase their economic viability – but also for all agro- pastoral farms in the area http://pactores.eu [email protected] The Greek case study area Mountain Ziria – Peloponnese ITALY Mount Sibillini, SPAIN Marche Pallars Sobirà, Catalunya Comune di Osilo, Sardinia GREECE TURKEY ALGERIA Mts. Ziria, Kyllini, Cyllene, West Setif High Peloponnese Mediterranean Plains (Antalya, Burdur, TUNISIA Isparta) El Ouara Natural Region Climate, geography, and demographics • 397.6 km2 • Mediterranean climate characterized by hot, dry summers and mild, wet winters • Up to 2376 m a.s.l. • Includes 4 Natura 2000 sites • High biodiversity featuring rare species, >100 plant species • Large lakes: Doxa and Stymfalia • 19 village communities Pastoral activities, products and services As a typical Greek mountainous area, the local economy is not adequately diversified. The local ski center and the artificial Lake Doxa attract visitors, inducing the development of tourism facilities. Concerning the primary sector, bean production is important in the local plain of Feneos. The oldest and most important economic activity is animal production, almost exclusively under the transhumant system, which actually involves about 40 families rearing 12 000 sheep and goats History and context of current challenges Transhumance in the area was a form of societal organization in which large and independent family groups migrated with and organized their lives around livestock husbandry. Seasonal migrations took 3-8 days; the entire community followed, building new huts or restoring old ones every year. Sarakatsanaioi (traditional routes) were organized in closed Tseligkato (societies) which included all kinds of professions (tailors, bakers, cheese-makers, grocers, etc.) to ensure autonomy. The number of agro-pastoralist families has been decreasing, with a proportionate increase in the number of animals managed. http://pactores.eu [email protected] 1. Technical and economic characteristics Group 1 Group 2 Group 3 Average farm (<200 ewes) (201-400 ewes) (>400 ewes) 1. Number of farms (Sample) 6 9 8 23 2. Flock size (Ewes-Dams) 166.7 288.3 512.3 334.5 3a. Milk yield (kg/ewe/year) 105,3 96,3 97,7 98,1 3b. Milk yield (kg/dam/year) 61.7 92.3 98.8 90.9 4a. Sheep milk price (€/kg/ewe) 0.959 0.956 1.013 0.986 4b. Goat milk price (€/kg/dam) 0.621 0.620 0.625 0.621 5. Cultivated area (ha/ewe-dam) 0.04 0.04 0.05 0.04 6. Labor requirements (h/ewe-dam) 21.5 19.1 13.4 16.4 Family (h/ewe-dam) 21.5 16.8 12.2 14.9 Hired (h/ewe-dam) 0.0 2.3 1.3 1.5 There are significant differences between farms according to size! Goat milk yields are considerably lower for smaller farms Larger farms profit from higher milk prices All farms cultivate land for feedstuff Family members do most of the work – They rarely hire workers Larger farms are organized better and require less labor per ewe/dam (but more in total) http://pactores.eu [email protected] 2. Synthesis of gross output Group 1 Group 2 Group 3 Average farm (<200 ewes) (201-400 ewes) (>400 ewes) €/ewe % €/ewe % €/ewe % €/ewe % Milk 85.57 52.3 80.52 48.5 86.81 54.6 84.53 52.2 Cheese/Wool 13.00 7.9 1.08 0.7 4.59 2.9 4.50 2.8 Meat 28.04 17.1 47.92 28.9 39.59 24.9 40.90 25.2 Subsidies 37.00 22.6 36.55 22.0 28.07 17.6 32.09 19.8 Single Farm Payment (SFP) 18.30 11.2 22.13 13.3 17.63 11.1 19.24 11.9 Others 18.70 11.4 14.30 8.6 10.44 6.6 12.82 7.9 TOTAL 163.61 100.0 166.07 100.0 159.06 100.0 162.02 100.0 For all farms, milk is the most important product! Smaller farms also produce cheese for direct sale to consumers and gain part of their livelihoods Meat (lamb and kid mostly) is more important for medium and larget farms – No fattening Subsidies are very important for small farms, especially the Mountain Area Payment and coupled payments per animal or per hectare Group 1 (<200 ewes) Group 2 (201-400 ewes) Group 3 (>400 ewes) Average farm Milk Cheese/Wool Meat Single Farm Payment Other income payments http://pactores.eu [email protected] 3. Synthesis of expenses Group 1 Group 2 Group 3 Average farm Expenses (<200 ewes) (201-400 ewes) (>400 ewes) 1. Land rent 7.60 5.07 3.24 4.42 2. Labour 64.50 58.36 40.91 49.86 3. Capital 116.04 85.87 86.21 89.97 3a. Variable capital 99.55 74.17 70.02 75.26 Purchased feedstuff 56.97 46.98 50.02 49.90 Animal production 27.90 18.61 10.32 15.40 Crop production 14.68 8.58 9.68 9.96 3β. Fixed capital 16.49 11.70 16.18 14.71 TOTAL 188.14 149.30 130.35 144.26 Feeding is the most important cost driver! Animals graze all year, but in the lowlands they require supplementary concentrates and forage Most of labour expenses are implicit i.e. not paid, but does not mean that labor is free! Larger farms have more fixed expenses per animal - More modern buildings and equipment Group 1 (<200 ewes) Group 2 (201-400 ewes) Group 3 (>400 ewes) Average farm Land rent Labour Feeding expenses Other variable expenses Fixed expenses http://pactores.eu [email protected] 4. Farm economic results Group 1 (>200 Group 2 (201- Group 3 (>401 Average farm ewes) 400 ewes) ewes) Net profit -15.06 21.06 30.82 21.56 Labor wage 2.30 4.17 5.34 4.36 Farm income 79.11 100.62 71.92 82.53 Gross margin 73.26 96.18 91.09 90.49 Small transhumant farms operate with losses! Larger farms have the best economic prospects Family members are generally under-remunerated Subsidies have a direct impact on farm family livelihoods Without subsidies farms might go out of operation 100,00 6,00 80,00 5,00 60,00 4,00 40,00 3,00 20,00 2,00 dam) - h) / € ( Wages ewe 0,00 1,00 / Net profit € ( Farm income Gross Gross margin >200 201-400 >401 >200 201-400 >401 >200 201-400 >401 -20,00 With subsidies No SFP No subsidies 0,00 -40,00 -1,00 -60,00 -2,00 -80,00 -3,00 Τίτλος άξονα Net profit Gross margin Farm income Labor wage Minimum wage Pastoral Actors, Ecosystem Services and Society How to ‘read’ the economic results of farms? Economic results are indicators of the economic performance of farms. Each one demonstrates a different aspect of farm management, operation and performance. There is no single economic result to show that one farm performs well or bad or better or worse than others. However, each one shows if there are specific adjustments that are required to improve the viability of the farm. Also the economic results Do not show how much money a farmer earns Are dynamic and illustrate the situation of a farm for a specific period, according to numerous market, social, economic and environmental factors Economic results Short description Calculation Gross revenue The value of all outputs produced by Value of milk (Production*Price) + Value of meat the farm in one year (Production*Price) + Value of other products sold in markets + Value of products consumed by the family + Income payments (subsidies) Production costs Total expenses incurred (in one year) to Land rent (own and rented) + Labor expenses (Hired produce all products and family) + Variable capital + Annual expenses of fixed capital Net profit/loss Demonstrates the performance of the Gross revenue – Production costs farm i.e. how successful the combination of the production inputs is. Pertains to entrepreneurial and/or market-oriented farms Return to land Shows how and if arable land is used in (Rent + Net profit/loss)/(Ha cultivated) an efficient way by the farm (mainly to produce feedstuff) Return to labor The returns of labor in all activities (Labor expenses + Net profit/loss)/(Total labor related to dairy production requirements) Gross margin The availability of capital to cover the Gross revenue – Variable expenses fixed expenses and obligations of the farm.
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